Be careful in financials with tendency for aggressive accounting (especially ones which lengthen the NPA recognition cycle). Punit has noted a few instances.
In a leveraged undertaking, aggression in lending coupled with “liberal” accounting can make for a disaster in the wrong credit cycle (luckily we are now in a good credit cycle). Banks and NBFCs can compound optically for a long time until one fine season when they fall 90%. Unless one is confident about the book quality, it would be unwise to make a significant bet or sleep on the “investment” with such characteristics (red/orange flags). If you are in it, be constantly vigilant. When you see smoke, cut the position size.